THE ATTCDIRXEY GENERAL 

OE' TEXAS 

October 20, 1986 

Honorable Terra1 R. Smith Opinion No. JM-565 

Chairman 

Criminal Jurisprudence CommL.ttee Re: Status of the city of Lago 

Texas House of Representatives Vista and the Travis County MuniP. 0. Box 2910 cipal Utility District No. 1 under 

Austin, Texas 78769 article 1182c-1, V.T.C.S. 

Dear Representative Smith: 

You request an opinion construing sections 2 and 6 of article 

1182c-1. V.T.C.S. This statute applies to cities and towns which have 

annexed or may annex territ,ory within water districts. V.T.C.S. art. 

1182c-1, Il. It sets out the city's powers and duties toward water 

districts it has annexed in whole or in part. 

You inquire about the application of article 1182c-1. V.T.C.S., 

to the city of Lago Vista and Travis County Municipal Utility District 

No. 1. The Municipal Ur:L!Hty District [hereinafter the MUD] was 

created in 1972 with an arena of approximately nine square miles. In 

1984 Lago Vista was inco:rporated as a general law village under 

chapter 11 of Title 28, 'I.,T.C.S. As originally incorporated, the 

village of Lago Vista was almost entirely within the MUD, encompassing 

two square miles of it. In April of 1985, the village of Lago Vista 

merged and consolidated w:Lth three other communities, so that the 

incorporated area of Lago Vista now includes approximately eight 

square miles of the MUD. The remaining square mile of the MlJD is 

located entirely within Lzlg;o Vista's extraterritorial jurisdiction. 

In September 1985, Lago Vista became a general law city operating 

under chapters 1 through 10 of Title 28, V.T.C.S. See V.T.C.S. art. - 

961. 

The city of Lago V!.sta now has annexation authority under 

articles 970a. 974, and '374g. V.T.C.S., and wishes to annex the 

remaining one square mile portion of the MUD which is not included 

within its boundaries. The city proposes to annex the remaining 

portion of the MUD without automatically assuming all of its debts and 

taking over all of its asset:s. You ask whether it may do so. 

Article 1182c-1, V.T.C.:3., applies to all incorporated cities and 

towns "which have heretofore annexed, or hereafter may annex, all or 

any part of the territor), within one (1) or more . . . municipal 

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Honorable Terra1 R. Smith - Page 2 ~(JM-565) 

utility districts. . . ." V.T.C.S. art. 1182c-1, 91. If all the 

territory within the district is annexed, the city is required to take 

over the properties and assets of the district, assume all of its 

debts, liabilities and obli$;ations , and perform all of its functions. 

V.T.C.S. art. 1182c-1, 92. After the annexation, the district is to 

be abolished in accordance with the procedure outlined in section 2 of 

article 1182c-1. V.T.C.S. 

Section 6 of article 1182c-1, V.T.C.S.. provides as follows: 

Sec. 6. When c.ny city or town is newly incorporated over all or any part of the territory 

within a water control and improvement district, a 

fresh water supply district or municipal utility 

district, the gove,rning body may adopt an ordinance making the Frovisions of this Act applicable 

to such city or t,Dwn and, upon the adoption of 

such an ordinance by a vote of not less than 

two-thirds (2/3) of the entire membership of such 

governing body, the provisions of this Act shall 

thereafter be appXcable to such city or town and 

to such districts situated in whole or in part 

therein. 

Section 6 thus makes tt.e provisions of article 1182c-1. V.T.C.S.. 

optional for "any city or town . . . newly incorporated over all or 

any part of the territory within a . . . municipal utility district." 

This section is in effect an exception to section 1 of article 

1182c-1, V.T.C.S., which stz:tes as follows: 

Section 1. Th:.s Act shall apply to all incorporated cities~~d towns, including Home Rule 

Cities, and those;,perating under general laws or 

special charters -(hereinafter 

'cities') 

called 'city' or 

which-have heretofore annexed, or 

hereafter' may ar;ex, all or any part of the 

territory within orie (1) or more water control and 

improvement dist&ts, fresh water supply districts or municcpal utility districts, which 

districts were organized for the primary purpose 

of providing such municipal functions & -the 

supply of fresh water for domestic or commercial 

uses, the furnishtng of sanitary sewer service or 

drainage services, any or all. Such cities shall 

succeed to the powers. duties, assets, and obligations of such district or districts in the manner 

and to the extent hereinafter provided. (Emphasis 

added). 

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Honorable Terra1 R. Smith - Page 3 (JM-565) 

When a statute includes a general provision that apparently 

applies to all cases and a special provision which applies to a 

particular case, the special provision prevails over the general 

provision and governs the cases within its terms. Dolan v. Walker, 49 

S.W.2d 695 (Tex. 1932); s+r v. Collins, 25 S.W.2d 804 (Tex. 1930). 

See also Gov't. Code, §31l.K!6. 

Lago Vista was incorporated in 1984 over territory included in 

the Travis County MUD No. 1. At that time, Lago Vista became a "city 

or town . . . newly incorpozated over . . . any part of the territory" 

of a municipal utility district within section 6 of article 1182c-1, 

V.T.C.S. 

You state that the city of Lago Vista has never adopted an 

ordinance which would make the provisions of article 1182c-1, 

V.T.C.S., applicable to it and to the Travis County MUD No. 1. The 

city is therefore not subject to the provisions of article 1182c-1, 

V.T.C.S. See Ford v. Town of Co ell 407 S.W.2d 304. 305 (Tex. Civ. 

APP. - Da-as 1966, writ -d' ref d n.r.e.) (town incorporated over 

existing water district adopted ordinance "to authorize the Town to 

take over the Water Distric.:"). It may annex the remaining portion of 

the MUD without taking over its properties and assets, assuming its 

debts, liabilities and obligations, or performing its functions as 

required by section 2 of a:rticle 1182c-1, V.T.C.S., for cities which 

are subject to this statott:., Nor is the Travis County MUD No. 1 to 

be abolished pursuant to s,ection 2 of article 1182c-1, V.T.C.S., 

following annexation by the city of Lago Vista. A city may overlap in 

territory with a special purpose municipal entity invested with 

limited powers, even though some of their purposes are the same. city 

of Pell; v. Harris Count], Water Control and Improvement District 

No. 7. 198 S.W.2d 450 (Tex.71946) (city may annex territory located in 

a water control and imprsrlement district). See Attorney General 

Opinion JM-400 (1985) (city which incorporateswithin an existing 

rural fire prevention district remains part of the district). 

SUMMARY 

The city of La3o Vista was "newly incorporated" 

over part of the territory within the Travis 

County Municipal Utility District No. 1. Lag0 

Vista has not adopted an ordinance pursuant to 

section 6 of arti5Le 1182c-1, V.T.C.S.. making the 

provisions of that statute applicable to it. If 

the city of Lago Vista annexes all of the remaining territory of the Travis County MUD No. 1, the 

city will not be subject to the requirements in 

article 1182c-1, V.T.C.S., that it take over the 

properties and ilssets of the MUD, assume its 

debts, liabilities and obligations, or perform its 

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Honorable Terra1 R. Smith - Page 4 (JM-565) 

functions. The MUI) will not be abolished pursuant 

to article 1182c-l:, V.T.C.S.. but will continue to 

exist as an entit:r legally distinct from the city. 

Veryltruly yoursA A , , 

-JIM MATTOX 

Attorney General of Texas 

JACK HIGHTOWRR 

First Assistant Attorney Ge!u?ral 

MARY KELLER 

Executive Assistant Attorne:; General 

RICK GILPIN 

Chairman, Opinion Committee 

Prepared by Susan L. Garrissm 

Assistant Attorney General 

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Honorable Terra1 R. Smith - Page 5 (JM-565) 

RQ-805 

JNINDEX HEADINGS 

ANNEXATION 

CITIES AND TOWNS 

POLITICAL SUBDIVISIONS 

SPECIAL DISTRICTS (?) 

WATER DISTRICTS (?) 

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